TechFlow news, on February 9, according to information from the China Court Website, the Tongzhou District People's Court in Nantong City, Jiangsu Province recently heard a special case of civil lending dispute.
The plaintiff Han invested 2,000 Tether coins through his friend Ji, with an investment amount of 15,000 RMB. As Han failed to obtain returns and could not recover the principal, both parties later converted the virtual currency transaction into a loan relationship and signed an IOU.
The court held that virtual currencies do not have legal tender status and cannot circulate or be used as money in the market. Moreover, investing in virtual currencies and related derivatives violates public order and good customs, rendering such civil legal acts invalid.
Ultimately, the court dismissed the plaintiff's claims, ruling that losses arising therefrom shall be borne by the investor personally.
